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Triad becomes latest victim of credit crunch

UK IT services provider Triad Group has warned investors that the mayhem in the financial services sector could hit sales in the second half of its current fiscal year.

As a result of the turmoil in financial markets… a number of financial institutions with whom we were already working or expecting to start work in the short term have delayed or cancelled plans for IT development, said Triad. This is likely to affect our utilization levels in the second half of the year although it is too early to estimate the impact.

The announcement comes in the same week that another UK-based vendor Detica Group said its full-year prospects had been adversely impacted by the global credit crisis. It is not just UK-based companies feeling the pinch, either. Cognizant’s fourth-quarter revenue forecasts fell below market expectations, which was widely attributed to fears over demand from the financial services sector, while French provider Sopra has also admitted to taking a hit.

Meanwhile, Triad also reported that a fall in activity in the public sector contributed to the company reporting a 4% drop in sales in the first six months of fiscal 2008. Triad’s first-half sales were 17.1m pounds ($35.1m), down from 17.8m pounds ($36.6m) in the same period the previous year. The company did however narrow its net loss to 601,000 pounds ($1.2m) from 1.9m pounds ($4.0m) in the first half of fiscal 2007.